The executive should investigate the possibility of abolishing government Royalty tax and reducing the differences in corporation tax between the Republic of Ireland and Northern Ireland

Pat Doherty Committee chairman

"The committee also believes that the substantial government subsidies to the nuclear energy industry should be redirected to the renewable energy industry."

The report, which examined the high cost of electricity in Northern Ireland but did not offer any recommendations on reducing prices, called on the Ulster Unionist minister to explore all possible avenues in bringing down prices for the consumer.

The committee said they were "content to await the outcome" of a report by Sir Reg's department on developing new energy markets for the province.

Sinn Fein committee member Dara O'Hagan said she and her colleagues had agonised long and hard over the various options available, which include the buying out of bonds and allowing contracts to expire.

"We got the feeling that we weren't in full possession of all the information in respect to the contracts," she said.

Renewable resources

"Vested interests were pushing us in a certain direction to go for bonds."

Committee chairman Pat Doherty outlined the gains that could be made from an all-island energy market.

However, the Sinn Fein assembly member added: "There would need to be adequate electricity and gas interconnector capacity, common approaches both to the applicable fiscal regimes and charging policies.

"The executive should investigate the possibility of abolishing government Royalty tax and reducing the differences in corporation tax between the Republic of Ireland and Northern Ireland to enable companies to trade in a fair and equitable all-island energy market."

Another key recommendation of the report was the development of environmentally-friendly sources of renewable energy such as wind farms.

Mr Doherty called for grant aid to be given to domestic consumers seeking to obtain energy from renewable sources.

The report also dealt with the issue of fuel poverty, and supported a previous assembly recommendation that the Energy Efficiency Levy should be increased to an average of �5 per customer per year.

Environment Minister Dermot Nesbitt, also an Ulster Unionist, last week criticised the Irish Government for bringing its court action against the British Government in an attempt to close the Sellafield reprocessing plant because of concerns over raditation and pollution.

Mr Nesbitt said the British-Irish Council of ministers was the proper place to raise any concerns over Sellafield.